ENHANCING INVENTORY MANAGEMENT EFFICIENCY FOR BOTTLED JAEW HON SOUP AND DIPPING SAUCES: A CASE STUDY OF JAEW HON BAN SUAN NON SA-AT RESTAURANT, BRANCH 2

Abstract

This research addressed the challenges in inventory management for bottled jaew hon soup and various dipping sauces at Jaew Hon Ban Suan Non Sa-at, Branch 2. The preliminary analysis revealed a significant issue: ordering quantities routinely exceeded actual consumer demand, leading to chronic overstocking and products expiring before sale. This resulted in preventable increases in operational costs. To solve this, the study involved collecting detailed sales and inventory data, including daily sales records. This data was then utilized to implement quantitative demand forecasting techniques. Key inventory management parameters were calculated, specifically the Economic Order Quantity (EOQ) and the Reorder Point (ROP). Furthermore, the First-Expire, First-Out (FEFO) inventory principle was integrated into the proposed process. The findings demonstrate that implementing an optimized inventory system, based on calculated EOQ and ROP values in conjunction with the FEFO principle, can significantly improve efficiency. This integrated approach successfully reduces overstock levels, substantially lowers the risk of product expiration, and effectively decreases overall inventory holding costs.